Can you lower your credit card interest rate without hurting your credit score?
Cutting your credit card rate could save you money on interest, but some strategies come with a credit tradeoff.
Borrowers are grappling with high credit card interest rates, averaging 22.15% as of now. While there's uncertainty about future rates, lowering your credit card interest rate without damaging your credit score is possible. One way is to negotiate with your credit card company for a lower APR. If you've made timely payments, have a long history, or improved your credit profile, you may have leverage.
This typically won't hurt your credit score unless they require a hard inquiry. Another option is enrolling in a credit card hardship program, which can temporarily lower your interest rate without affecting your credit score directly. However, some programs may close your account, impacting your credit utilization ratio. Using a balance transfer credit card can also help, but it usually involves a hard inquiry and closing an existing card.
Lastly, a debt management program can negotiate lower interest rates or waive fees, but it may require closing accounts and temporarily lower your score. Carefully consider the credit impact and long-term benefits of each option.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
